J.C. Penney just had one of its worst quarters ever, the fault of CEO Ron Johnson's disastrous relaunch plan. So what's next? Well, in an analyst call Friday, Johnson flipped back and forth between delusional cheerleading and confessing his mistakes.

J.C. Penney CEO Ron Johnson has a bold plan to revive the sluggish retailer, but based on its latest earnings report, the plan isn't working. However, it's way too early in this marathon metamorphosis to count Penney's out. Here's why:

On Tuesday, JCPenney CEO Ron Johnson presented on the company's earnings, which were disappointing. The "transformation is ahead of schedule," he said, but one big problem is that customers don't get its new sale-free, coupon-free pricing strategy.

Many of America's best-known retailers, including Walmart, Home Depot and JCPenney, will be stepping into the earnings spotlight this week. Their reports come on the heels of disappointing January retail sales numbers from the Commerce Department.